Sunday, 5 May 2013

Tips to organize your company finances

Money matters in every business. If money
is managed well, the business grows. On the other hand, if the management of
financial resources is poor, business goes bankrupt. Managing the money, the inflow
as well as outflow is time-consuming. Following simple tips on how to organize
your company finances can save a lot of time and energy. By saving on time and
energy, businessmen can focus well on other areas of strategic planning to grow
the business.

Here are few of the tips that can be incorporated in organization of finance:

1.Maintain clean filling system:
Do not add junk in the files by saving even the unnecessary documents. Throw
out the papers, envelops, bills that have served their purpose and are no
longer required. A bunch of unnecessary bills delay important activities like
auditing.

2.Make separate billing files:
Make separate files for purchase and sales transactions. Files can also be
separated for different vendors. Within each file, arrange the bills in a
proper order. Arranging bills as per the date on which they accrue is one of
the most recommended process. It makes sure that bills are not misplaced. Date
wise record keeping helps quick tally of the books of accounts and actual bill
statements.

3.Tally the bank balance: Make it
a habit to tally the balance in the bank at the end of every month. The total
debit and credit in the bank statement should match with the transactions done
in the month. Mismatch with the business records, if any should be notified and
clarified with bank authorities, without delay.

4.Adapt technology: Start using
technology like online banking to save the time and resources. Online banking
helps to save paper by cutting on activities like banking through cheques. Online
banking is also accessible 24*7, making the instant money transfer possible
from anywhere.

5.Consolidation of accounts: Multiple account of same nature (current/
saving) with same bank can be consolidated into one account. Do not even spread
the money in different account that is needed for investments. Let the entire
debit of money for investments from one account. Cancel the accounts which have
not been used for a long time. Transfer the money from that account to the ones
which are operated frequently.

6.Choose Auto debit: Auto debit
of money for pre-defined purpose like monthly/quarterly investments make the
life easy. A reminder message facility for the debits can be asked from the
banks. The most
important tip to organize finance is not to delay in clearing the bills and
making payments. Always make payment on
or before time. Clearing debts on time increases the credit ratings of the
companies.